Two new OmniVision image sensors, the OV4682 and the OV7251, are part of Google's Tango development kit. The 4682 has a 4MP resolution, supports 90fps video capture, and can capture IR information (enables depth analysis), and the 7251 can capture VGA-resolution video at 100fps, while enabling low-light imaging and providing motion-tracking data.

The Nikkei reports Sony (SNE+2.4%) is talking with Apple about doubling its supply of image sensors to the tech giant, in support of a future iPhone. The paper adds Sony has laid the groundwork to handle the extra demand, and that its acquisition of a Renesas image sensor fab was done with Apple in mind.

While Sony is rallying, OmniVision (OVTI-5.6%) shares aren't responding well to the report. Apple has relied on both Sony and OmniVision for iPhone image sensors in recent years.

Techno Systems Research estimates Sony had a 32.1% share of the CMOS image sensor market in 2012. In addition to Apple, Sony supplies Samsung and Huawei.

Avago (AVGO+7.6%) is now up 18% (good for a $2.1B increase in market cap) since announcing a $6.6B deal to acquire LSI yesterday morning. Many of its chip industry peers have also rallied; the Philadelphia Semiconductor Index (SOXX+1.2%) is up 2.5% over the last two days.

The sharply contrasting nature of Avago and LSI's product lines - Avago depends heavily on RF and optical component sales, while LSI depends on storage controllers/adapters and network processors - could be fueling hopes other chipmakers will use M&A to expand their product lines and achieve greater scale.

Several firms have hiked their Avago PTs in response to the LSI deal, which is set to be financed with $4.6B in debt and a $1B convertible note investment from Silver Lake (conversion price of just $48.04). Nomura expects the deal to lift Avago's 2015 EPS by $1.00-$1.50; Avago is promising $200M/year in synergies by the end of FY15 (ends Nov. '15). RBC thinks FY15 EPS of ~$5 is possible; the consensus is at $3.89.

The Nikkei reports Sony (SNE) is looking to acquire a chip fab from struggling Renesas (RNECY), and plans to use it to expand CMOS image sensor production. The expected sale price is said to be $96M; an MOU could be signed as soon as the beginning of next week.

The paper points out Sony already has a ~30% share of the CMOS image sensor market, thanks in part to growing sales to Apple, Samsung, and other mobile OEMs.

Though OmniVision's (OVTI) FQ2 results beat estimates, the image sensor vendor is guiding for FQ3 revenue of $310M-$340M and EPS of $0.28-$0.44. That's largely below a consensus of $399.9M and $0.43. (PR)

OmniVision notes its saw slowing smartphone market growth in FQ2 - IDC estimates calendar Q3 shipments rose 39% Y/Y, albeit with a mix shift towards cheaper phones - as well as "intensifying competition." The company has been battling not only with age-old rival Sony (Apple's other iPhone image sensor supplier), but also Samsung and low-end upstarts such as Himax (HIMX - previous).

OmniVision's cash balance rose by $25.1M Q/Q to $265.6M.(equal to 35% of its current market cap). With shares depressed, could the company end up deploying some of that cash in a new buyback? OmniVision hasn't announced one since 2011.

Though some bad news was expected thanks to the guidance provided by mobile chip peers in recent weeks, Qualcomm (QCOM-3.8%) continues to slump in response to its soft FQ1 guidance, which reflects a big expected slowdown in chip shipment growth, and mixed FY14 guidance (above-consensus EPS, but below-consensus revenue).

On its CC (transcript), Qualcomm mentioned its chip division (QCT) growth will "moderate" in FY14 in part due to product mix - the fact the high-end smartphone market is "increasingly concentrated" (i.e. Samsung and Apple dominate) is said to affect QCT's sales and margins. While both Apple and Samsung are Qualcomm baseband chip clients, Apple relies on its own app processors, and Samsung partly does so.

At the same time, Qualcomm, which has been aggressively ramping R&D spend in recent quarters, says it will "control expenses" in FY14, and will exit FY14 with a lower opex run rate than it exited FY13 with. That, along with $4B in planned buybacks, is a major reason why FY14 EPS guidance is above consensus.

Goldman (Buy) is pleased with Qualcomm's FY14 3G/4G device ASP guidance of $216-$230, which implies only a 1% drop at the midpoint. It also likes Qualcomm's Chinese 4G optimism and guidance for 15% 2014 3G/4G device growth. Nomura (Buy) is disappointed with Qualcomm's FQ1 demand, but also declares the company is "demonstrating more leverage" than expected.

Himax (HIMX) expects Q4 revenue to be flat or slightly down relative to Q3's $192.8M; the consensus is for revenue to rise to $208M. Q4 EPS is expected to be in a range of $0.081-$0.101, below an $0.11 consensus.

Weakness in Himax's large-panel LCD driver business (reported yesterday by Digitimes) is blamed: Himax sees large-panel sales falling at a double-digit Q/Q clip due to soft TV, laptop, and monitor sales, and the end of China's TV subsidy program. The company remains upbeat long-term thanks to demand for larger TV screen sizes, and expects stronger sales to non-Chinese OEMs next year. Some of the Q4 weakness was likely priced in.

Small/medium-panel driver demand is healthy, fueled by smartphone-related sales to both top-tier OEMs and Chinese white-label vendors. Smartphone driver demand is expected to grow at a double-digit Q/Q rate in Q4, and remain strong in 2014. Tablet/automotive driver sales are expected to be flat.

Himax strikes an upbeat tone about its non-driver bsuiness, talking up new ASIC projects and touch controller wins, LCOS microdisplay wins from customers not named Google, and the potential of an 8MP image sensor launching in Q4 (acts as fresh competition for OVTI). But no specific guidance is given.

Samsung, whose full results arrive later this month, has been expected to report strong numbers for its DRAM/NAND flash ops, thanks to strong mobile demand and a favorable supply/demand balance that got better following a massive fire at a Chinese SK Hynix DRAM fab.

Several other chipmakers with strong mobile exposure, some of whom are major suppliers to Samsung's mobile device unit, are also rallying: SYNA+4.4%. OVTI+3.6%. SWKS+3.2%. RFMD+2.7%. ANAD+2.5%.

The Samsung Solutions Exchange (SSNLF.PK, SSNGY.OB), announced this morning, represents the electronics giant's biggest effort yet to grow its enterprise mobile clout, and in doing so become a little less dependent on Google.

The exchange serves as an app store for enterprise-specific apps, provides access to Samsung's enterprise SDK and 1K+ APIs, and acts as a meeting place for developers and businesses. It complements Samsung's SAFE initiative, which provides the company's Android hardware with a variety of security, device management, and data-syncing features.

Separately, Samsung announces it will launch a phone with a curved display next month in South Korea. Details are currently light, but there's a good chance the phone will use Universal Display's (OLED+1.1%) flexible OLED tech.

Also: Samsung says it has developed image sensor tech that significantly improves the light sensitivity and color fidelity of its CMOS image sensors. The technology, known as Isocell, will be used in an 8MP sensor set to be mass-produced in Q4.

Isocell could make Samsung a tougher competitor to OmniVision (OVTI+0.9%). However, Samsung's rivals might not be crazy about depending on the company for their image sensor needs.